How can insurers combat preventable water claims?

How can insurers combat preventable water claims? | Insurance Business Canada

Environmental

How can insurers combat preventable water claims?

One in six homes will file a claim for water damage of an average amount of nearly $17,000

Environmental

By
Emily Douglas

The article was created in partnership with Moen.

When it comes to insurance claims, some of the most common and expensive are often the most preventable. That’s according to Jerry Fairborn (pictured), national sales manager, commercial, at Moen. Speaking to Insurance Business, he said that certain catastrophes can be stopped in their tracks if you have the correct technology.

“Fire, for example, is a claim that can often be avoided through proper maintenance of electrical systems and the consistent testing of smoke detectors,” Fairborn explained. “Theft and vandalism are another great example, as the installation of home security systems, cameras and alarms make it easier to protect a property.”

The same goes for water damage, which is easily preventable through smart leak detection systems, though many consumers are unaware that such systems are an option. In fact, water damage accounts for 24% of all insurance claims and is even claimed six times more than fire and eight times more than theft*. Yet, water damage is often not addressed until it’s too late.

“Over 10 years, one in every six homes will file a claim for water damage and freezing of an average amount of nearly CA$17,000*,” said Fairborn. “These claims could be substantially reduced with the use of Moen’s Smart Water Security System.”

Comprised of three products, the hub of the system – the Flo Smart Water Monitor and Shutoff – attaches to the home’s main water supply line to monitor all water flowing through the home, 24/7. Using machine learning with Moen’s enhanced FloSense™ 3.0 Technology and MicroLeak™ Technology, it learns the home’s unique water usage patterns and can sense leaks as small as one drop per minute. If a leak is detected, it will notify the homeowner through the Moen Smart Water App and can automatically shut the home’s water off before damage occurs. For added peace of mind, it also can detect issues like running toilets and small drips.

For additional protection, Smart Leak Detectors are sensors that can be easily placed throughout the home in areas where water damage may be deemed a risk, such as the basement, attic or near the dishwasher, and will notify homeowners of high-moisture levels.

Finally, Moen’s Smart Sump Pump Monitor turns any existing sump pump into a smart sump pump by tracking its water levels and performance. It is especially helpful during storms for its ability to alert users before an overflow occurs, helping to prevent flooding.

All the products within Moen’s Smart Water Security System can be managed within Moen’s Smart Water App, where homeowners will receive real-time notifications.

Not only are water damage claims costly to homeowners, but insurers, too – who pay out billions annually for water damage and freezing claims. But what factors are driving this, and can anything be done to minimize these costs?

“There are a variety of water damage claims that are often preventable with a proactive mindset,” added Fairborn. “The most common claims we see range from failing washing machine hoses and refrigerator water supply lines to the collapse of water heaters. Old homes are also a major factor, with older plumbing systems more susceptible to bursts and leaks, and plumbing systems made with materials such as polybutylene more prone to failure,” he continued. “Failing sump pumps, especially during storms, can lead to flooding and significant water damage, ultimately ending in high claims.”

In recent years, numerous basements in areas such as Southern Ontario have flooded due to heavy rain events leading to higher-than-average insured losses which was in part due to failed pumps.

“Insurers can help combat preventable water damage claims by recommending smart water security products that can help minimize the risk of catastrophic water damage and identify problems quickly and proactively,” added Fairborn. “Encouraging homeowners to install these products through discounts on premiums or even by partnering with a brand to offer these devices at a reduced rate can help lower the overall number of claims, while promoting safe practices.”

So, if you’re looking to give your clients the best care possible while also lowering your own insurance business’s risk and costs, you’re in safe hands with Moen’s state of the art technology portfolio.

*Insurance Information Institute (III)

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